How to Turn a $5,000 Investment Into $1,500 in Passive Income (4 Stocks to Buy)
Four ultra-high-yield securities beat Treasury rates by a staggering margin, but three of them pay out in ways most income investors have never encountered and carry risks that could wipe out months of gains in a single coupon cycle.
A retiree living off a fixed portfolio checks one benchmark before anything else: what safe money pays. The 10-year Treasury yield stood at 5.21% on October 13, 2026. Any riskier income vehicle has to clear that bar by a wide margin to be worth the extra risk.
Income investors who want cash flow well above that level can look at high-yield securities. An even split of $5,000 across four ultra-high-yield names, $1,250 in each, would produce more than $1,500 in annual passive income at current payout rates. This is an unusual group. Three of the four are covered-call exchange-traded notes tied to gold, silver and crude oil. The fourth is a perpetual preferred stock that pays a dividend every business day. All four carry risks that a Treasury does not.
A $1,250 stake in each of these four high-yield names would produce the following annual income. The figures use a forward convention. For the three ETNs, that means the latest monthly distribution annualized. For the preferred, it means its stated 13.00% rate. ETN payouts change from month to month, so treat every figure here as a snapshot.
Strive Series A Preferred Pays a Dividend Every Business Day
- Stock #4: Strive Variable Rate Series A Perpetual Preferred Stock (NASDAQ:SATA)
- Yield: 13.29% (stated rate of 13.00% applied to the current price)
- Shares for $1,250: 12.78
- Annual Passive Income: ~$166.08
SATA is the preferred equity of Strive, a Dallas company that pairs a Bitcoin (CRYPTO:BTC) treasury strategy with its Strive Asset Management subsidiary, which manages more than $2.7 billion. SATA has paid its dividend every business day since June 16, 2026. Strive’s CEO, Matthew Cole, calls it the first U.S.-listed security to do so. Before the switch to daily payments, the 13.00% rate worked out to $1.0833 a month, or $12.9996 a year. With shares at $97.84, buyers lock in a little more than the stated rate.
The high yield comes from the structure. The preferred never matures, the rate is variable, and holders are paid ahead of common shareholders. Earnings coverage is a poor safety test for SATA. Strive posted a third-quarter 2026 non-GAAP net loss of $275 million, or $3.65 per share. That loss was driven by a $234 million fair-value decline in its bitcoin and preferred holdings, and it came alongside $26.2 million in SATA dividends declared. The payout is funded by treasury cash and new stock sales, such as 1,320,000 SATA shares sold at $90.00 for about $109.3 million in net proceeds. On the positive side, Strive reports no debt, no margin requirements and no encumbered bitcoin. It has more than 15,009 bitcoin plus about $87.6 million in cash. Keeping the dividend going depends on the bitcoin price and on Strive’s continued access to capital markets.
ETRACS Gold Shares Covered Call ETN Converts Gold Volatility Into Cash
- Stock #3: ETRACS Gold Shares Covered Call ETN (NASDAQ:GLDI)
- Distribution Rate: 17.06%
- Shares for $1,250: 8.95
- Annual Passive Income: ~$213.27
GLDI, an unsecured note, comes due February 2, 2033. Credit Suisse AG originally issued it, and UBS AG now stands behind the ETRACS family. The note tracks an index that has gold trust shares and theoretically sells monthly call options against them. The option premium passes holders as a variable monthly coupon, which explains the high payout. The latest distribution of $1.9853 annualizes to $23.8236, measured against a price of $139.63. The trailing 12-month total was higher, at $38.1812.
No payout ratio applies to a note. Safety depends on two things: UBS AG’s credit and the premiums available in the gold options market. Monthly payments in 2026 ranged from $1.5878 in July to $5.5594 in June. In 2022, they fell as low as $0.0341. Selling calls gives up some of gold’s upside in exchange for cash today, so part of the payout effectively replaces price gains. The payment records don’t break out return of capital, so check the issuer’s tax reporting before treating these coupons as pure income.
ETRACS Silver Shares Covered Call ETN Rides Silver’s Wider Swings
- Stock #2: ETRACS Silver Shares Covered Call ETN (NASDAQ:SLVO)
- Distribution Rate: 33.43%
- Shares for $1,250: 20.48
- Annual Passive Income: ~$417.91
SLVO uses the same structure on silver. This senior unsecured note comes due April 21, 2033, linked to monthly calls written on a silver trust ETF. Silver swings more than gold, and bigger swings mean higher option premiums. The latest payment of $1.7009, down from $1.899, annualizes to $20.4108. Trailing 12-month payouts came to $46.2882.
The payout is unpredictable. In 2026 alone, monthly coupons ranged from $1.3177 in August to $7.9098 in February. In 2022, they dropped to $0.0275. The price fell 7.95% over the past month to $61.05. Investors also take on the issuer’s credit risk.
ETRACS Crude Oil Shares Covered Call ETN Posts the Biggest Payout
- Stock #1: ETRACS Crude Oil Shares Covered Call ETN (NASDAQ:USOI)
- Distribution Rate: 80.82%
- Shares for $1,250: 26.82
- Annual Passive Income: ~$1,010.28
USOI is a senior unsecured note issued by UBS AG and due April 24, 2037. It tracks the Nasdaq WTI Crude Oil FLOWS 106 Index, which theoretically sells monthly calls on shares of a crude oil fund. It also charges an annual investor fee that accrues daily. Crude’s sharp moves drive large premiums, and the latest coupon of $3.1386 came in well above the prior $1.7002.
That one strong month inflates the forward figure. The annualized $37.6632 compares with a trailing 12-month total of $23.9829. At the trailing pace, the same stake would produce about $643.32. Coupons in 2026 ranged from $0.4265 in January to $7.4743 in April. Meanwhile, the price has risen 51.09% year to date to $46.60. UBS states clearly that these notes "do not guarantee repayment of the investment amount".
Four Positions, One Income Picture
| Name | Yield or Distribution Rate | Annual Dividend Income |
|---|---|---|
| Strive Series A Preferred (SATA) | 13.29% | $166.08 |
| The Gold Covered Call ETRACS (GLDI) | 17.06% | $213.27 |
| ETRACS Silver Covered Call (SLVO) | 33.43% | $417.91 |
| The Crude Oil Covered Call ETRACS (USOI) | 80.82% | $1,010.28 |
| Total | 36.15% | $1,807.54 |
What $5,000 Produces at Current Rates
Combined, these four positions generate $1,807.54 in annual passive income on a $5,000 investment, a blended yield of 36.15%. The crude oil ETN contributes $1,010.28, the silver ETN adds $417.91, the gold ETN brings $213.27, and Strive’s preferred rounds out the group with $166.08. That total clears the $1,500 target with room to spare, but the ETN coupons are variable and could fall back toward their trailing levels.
All four positions trade on NASDAQ, so an income investor can trim, adjust or exit any of them on any trading day. A rental property or private loan offers no such flexibility. When one commodity’s option premiums dry up, the money can be moved elsewhere quickly, and that ability to adjust is worth as much as the income itself.
Contact [email protected] for any questions or corrections.
Lee Jackson has covered Wall Street analysts' equity and debt research and equity strategy daily for 24/7 Wall St. since 2012. His broad, diverse career, including a stint as creative services director at an NBC affiliate in Austin, Texas, gives him unique insight into the financial industry.
Lee Jackson's journey in the financial industry spans more than 30 years, including nearly two decades as an institutional equity salesperson at Bear Stearns, Lehman Brothers, and Morgan Stanley. His career spanned pivotal sell-side Wall Street events, from the dot-com rise and bubble to the Long-Term Capital Management debacle, 9/11, and the Great Recession of 2008. This reflects his resilience and adaptability amid market volatility.
Lee Jackson’s practical financial industry experience, gained through a career at some of the biggest banks and brokerage firms, is complemented by a lifetime of writing across various platforms. This unique combination allows him to shed light on the intricacies of Wall Street in a way only someone with deep insider experience and knowledge can. Moreover, his extensive network across Wall Street continues to provide direct access for him and 24/7 Wall St., a privilege few firms enjoy.
Since 2012, Jackson’s work for 24/7 Wall St. has been featured in Barron’s, Yahoo Finance, MarketWatch, Business Insider, TradingView, Real Money, The Street, Seeking Alpha, Benzinga, and other media outlets. He attended the prestigious Cranbrook Schools in Bloomfield Hills, Michigan, and has a degree in broadcasting from the Specs Howard School of Media Arts.
